BOGO Inc. has two sequential processing departments, Roasting and Mixing. At the beginning of the month, the Roasting department had 2,000 units in inventory, 70% complete as to materials. During the month, the Roasting department started 18,000 units. At the end of the month, the Roasting department had 3,000 units in ending inventory, 80% complete as to materials. Cost information for the Roasting department for the month follows. Using the FIFO method, compute the Roasting department’s (a) equivalent units of production for materials and (b) cost per equivalent unit of production for materials for the month. Beginning work in process inventory (direct materials) $ 2,170 Direct materials added during the month 27,900
BOGO Inc. has two sequential processing departments, Roasting and Mixing. At the beginning of the
month, the Roasting department had 2,000 units in inventory, 70% complete as to materials. During the
month, the Roasting department started 18,000 units. At the end of the month, the Roasting department
had 3,000 units in ending inventory, 80% complete as to materials.
Cost information for the Roasting department for the month follows.
Using the FIFO method, compute the Roasting department’s (a) equivalent units of production for materials
and (b) cost per equivalent unit of production for materials for the month.
Beginning work in process inventory (direct materials) $ 2,170
Direct materials added during the month 27,900
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